Employ in Malta with ease.

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Facts & Stats

Malta is a popular destination for tourists from Europe and the world over. The country’s pristine waters, 15th century architecture, and rich history are all drawcards for a growing number of digital nomads and remote workers.

But for businesses looking to expand, Malta offers an industrialized economy with low corporate taxes, strong GDP growth, a high income, a bilingual population, a strong democracy (18th best), and a growing IT industry.

  • Capital city

    Valletta

  • Currency

    Euro
    (, EUR)

  • Languages spoken

    English, Maltese

  • Population size

    514,564 (est. 2019)

  • Ease of doing business

    Easy

  • Cost of living index

    73.61 (25 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    18%

  • GDP - real growth rate

    4.9% (2019)

Grow your team in Malta with Remote

Looking to employ workers in Malta? Companies hiring in Malta must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Malta on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Malta team. You can also pay contractors now in Malta with Remote.

Risks of misclassification

Malta, like many other countries, treats self-employed individuals or contractors and full-time workers differently and misclassifying employees can create entanglement with the Maltese Inland Revenue Department.

If you're worried about whether to hire contractors or employees in Malta or anywhere else around the world, Remote can help. Our Solutions Consulting team are experts in preventing misclassification risks. Download our Contractor Compliance Checklist for a solid overview, then talk to our team about your specific situation.

Employing in Malta

Maltese labor regulations are enshrined in the 1974 Republican Constitution which lays down the basis of workers’ rights and entitlements, as well in several statutes such as:

Employees in Malta enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Malta.

Minimum Wage

Maltese labor mandates a minimum weekly wage for all employees, as well as statutory increases employers must offer as an employee’s tenure increases. Here’s a breakdown of what employers should pay as the bare minimum.

  • 18 and above: €181.08 (€724.32 per month)
  • 17 years: €174.30 (€697.2 per month)
  • Under 17 years: €171.46 (€685.84 per month)

After working a year with the same employer, an employee earning the minimum wage will be entitled to an increase of €3 per week added to the base pay. After the second year, that grows to an increase of €6 per week or a €24 bonus on the employee’s monthly paycheck.

Employees earning more than the minimum wage will get similar increases, starting in the second and third years of their continued employment with the same employer.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Malta fast. The minimum onboarding time we need is only 3 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Malta

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Malta are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Malta

Taxes in Malta

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Malta.

  • Employer

    • 10% - social security contribution

  • Employee

    • 10% - social security contribution

  • For married employees

    • 0% - Up to €12,700

    • 15% - €12,701 - €21,200

    • 25% - €21,201 – €28,700

    • 25% - €28,701 – €60,00

    • 35% - above €60,000

  • For single employees

    • 0% - Deductions (EUR) - 0
      Taxable income (EUR) 0 - 9,100

    • 15% - Deductions (EUR) - 1,365
      Taxable income (EUR) 9,101 - 14,500

    • 25% - Deductions (EUR) - 2,815
      Taxable income (EUR) 14,501 - 19,500

    • 25% - Deductions (EUR) - 2,725
      Taxable income (EUR) 19,501 - 60,000

    • 35% - Deductions (EUR) - 8,725
      Taxable income (EUR) 60,001 and above

  • For parents

    • 0% - Deductions (EUR) - 0
      Taxable income (EUR) 0 - 10,500

    • 15% - Deductions (EUR) - 1,575
      Taxable income (EUR) 10,501 - 15,800

    • 25% - Deductions (EUR) - 3,155
      Taxable income (EUR) 15,801 - 21,200

    • 25% - Deductions (EUR) - 3,050
      Taxable income (EUR) 21,201 - 60,000

    • 35% - Deductions (EUR) - 9,050
      Taxable income (EUR) 60,001 and above

Types of leave

Paid time off

Employees working a 40-hour week are entitled to 192 working hours (24 working days) off, plus 8 hours for every public holiday that falls on a weekend. The 192-hour base rate equals 24 days, calculated by 8 hours of work daily.

For example, for 2021 employees are guaranteed 216 working hours off plus 24 (8 working hours * 3) hours to cover for 3 public holidays that fall on weekends.

However, if the employee works below an average of eight hours daily, the basic holiday entitlement can be calculated by multiplying the number of working hours the employee puts in daily by 24.

Employees who’ve worked with an employer for less than a year will be entitled to paid vacation that’s equivalent to the length of time they’ve worked.

Public holidays

Employees are entitled to take the 14 national holidays off, with full pay. And should a national holiday fall on a rest day, an employee will be entitled to 8 working hours (i.e., 1 working day) off work as compensation.

Sick pay

The Maltese social security office handles a lot of the financial obligation for employees’ sickness benefits.

As a principle, an employer can either:

  • pay an ailing employee the normal gross wage for the first three days of the illness, and then pay the gross wage, less the sickness benefit issued by the government, or
  • pay the employee in full and get refunds from the employee for the sickness benefits paid to the employee by the social security office

In essence, the social security office pays a sickness stipend while the employee pays the difference between that amount and the employee’s normal wages.

Sickness benefit entitlements can be paid for up to 156 days and may be extended to 468 days in 2 years as per the Medical Board’s decision.

Maternity leave

Pregnant or postpartum employees are entitled to 14 weeks of leave, with a maternity benefit of €97.84 per week (roughly €391.36 per month) paid by the employer.

After the first 14 weeks, the employee draws €179.33 weekly as a maternity leave benefit from the government over the next 4 weeks.

Paternity/parental leave

There are currently no provisions in the Maltese labour law regarding paternity leave. However, many global employers provide their own supplementary benefits including parental leave policies to support partners.

Employment termination

Termination process

An employee’s contract may be terminated for just cause (negligence, dishonesty, flagrant disobedience, etc.), redundancy, or when an employee reaches retirement age.

Notice period

Maltese labor law mandates that employees are informed in advance before having their employment so they can make appropriate arrangements to make the transition.

During probation period, an employee may be dismissed with one weeks’ notice if they have completed at least 1 month of employment. Notice periods follow a sliding scale from here:

  • 1 month to 6 months: 1 week
  • 6 months to 2 years: 2 weeks
  • 2 years to 4 years: 4 weeks
  • 4 years to 7 years: 8 weeks
  • More than 7 years: 8 weeks, plus 1 week for each additional year

Severance pay

There is no mandated severance pay specified under Maltese labor law.

Probation periods

Probation can last anywhere from a week to 12 months, provided it’s agreed upon in advance by both parties.

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